The National Association of Professional Insurance Agents (PIA) has applauded the US Congress...
The National Association of Professional Insurance Agents (PIA) has applauded the US Congress for granting a two-year extension of the Terrorism Risk Insurance Act (Tria).
On Friday 16 December, the Senate passed a renewal bill to reconcile differing versions that had been implemented in the House and the Senate.
PIA said this was good news for the US in terms of the economy, insurance agents and businesses.
Len Brevik, PIA executive vice-president and chief executive, praised the move but warned that the bill fell short of what would be needed.
PIA actively lobbied for the inclusion of the public-private commission, which was stripped from the final version of the bill.
Instead, a President's Working Group will be appointed to make recommendations.
Meanwhile, house Financial Services Committee chairman Michael Oxley criticised the final version of the bill as short-sighted.
In a statement, Oxley said: “Important reforms in the House legislation that would have helped the insurance industry to eventually assume all terrorism risk have been left behind, again at the recommendation of the Senate and the Administration.”
“In this short-sighted legislation, we have missed a golden opportunity to frame the Tria program more effectively and to move to a more market-based solution.”
He added: “When Members, inevitably, are asked again to renew this ‘temporary' program, they will correctly conclude that in 2005 the can was simply kicked down the road without any real reform.”
